While the Indian shipping industry burgeoned under the rule of the British East India Company and British Empire, post-Independence has brought exponential growth to many aspects the Republic’s economy. According to the International Monetary Fund's April 2017 World Economic Outlook database update , India is the seventh largest economy in the world by nominal GDP and the third largest in terms of purchasing power parity. With a coastline of about 7,517 kilometers, ...

When a trade and transport giant experiences a technical failure, the effects can be widespread, even disastrous. The shipping world witnessed this first-hand on June 27, when A.P. Moller-Maersk was hit by a devastating cyber attack, leaving the company paralyzed. The so-called Petya virus effectively wiped out IT systems company-wide, disabling many functions from Maersk Line sailing schedules and online bookings to APM Terminal operations. Even here at ocean carri...

Prior to 2016, the parent company of liner carrier OOCL had lost money in only one year dating back to the 1990s. That year was 2009, one in which every carrier lost gobs of money due to the repercussions of the global economic downturn, and OOCL couldn’t escape the vortex. But the Hong Kong-based carrier quickly bounced back in 2010, making an operating profit of nearly $900 million to more than wipe away its 2009 losses. That was something only four publicly trade...

The U.S. and Mexican governments recently averted a potentially nasty trade dispute involving sugar, but what should have been a sweet victory has instead left a sour taste in the mouths of industry on both sides of the border. Various U.S. sugar lobbies, such as the Coalition for Sugar Reform and American Sugar Alliance, have already stated that they would not support the agreement, no matter how much the Trump administration touts it as a victory. And similar trad...

The past couple of years haven’t been easy for the shipping and logistics industry. The pricing landscape has become increasingly competitive as companies try to undercut each other in a race to the bottom on rates. It’s apparent that this trajectory is unsustainable and will lead to more companies potentially going out of business if they continue unabated. Below are some of the top commercial issues facing the industry today and some simple strategies to remedy them and drive...

The consolidation from four ocean carrier alliances on major east-west trades into just three is sure to have a huge impact on the shipping industry. American Shipper has launched a short survey to collect feedback on how the industry expects to be affected by these changes. Thank you for your consideration and we greatly value your participation in American Shipper research initiatives. [cp:scripting key='SurveyManager' dataid='1f...

It’s good to study history. It reminds us of adage: “the more things change the more they stay the same.” It gives us a way to learn from our mistakes, but also a blueprint for our future successes. In American history, no two names may be more synonymous with success than John D. Rockefeller and Andrew Carnegie. One was an oil tycoon, the other a steel magnate. Both of them got into the shipping business. Aside from Standard Oil, Rockefeller also owned...

It seems placid dairy cows are next up in the crosshairs of California legislators and environmental regulators. The cows didn’t do anything to get themselves on the “most wanted” list. It’s just that the state has identified cows as a major source of greenhouse gases and decided something needs to be done about them. Cows are serious business in California - some five million of them reside here. The state’s dairy farmers produce 20 percent of the entire U.S. milk supply and mo...

In mere weeks, Donald Trump will be inaugurated as president, and part of the platform upon which he rode to Washington was the idea that manufacturing jobs can and should return to the United States. Let’s leave aside the issue of whether this is possible for the moment and look more closely at the real threat to those jobs. While the outsourcing of manufacturing, increased levels of imported goods, and free trade in general have been vilified as U.S. job killers by some politi...

If it seems like we’ve been talking a lot about mergers and acquisitions, and rumors thereof, in this column, it’s because we have, and for good reason. Last month, we debunked speculation that industry leader Maersk Line would pursue a purchase of the two largest ocean carriers in South Korea: the now insolvent Hanjin Shipping, which had already filed for court receivership in Korea, and Hyundai Merchant Marine (HMM), which had just come through the other side of a financial restructuring o...

If there’s one thing that the recent, divisive United States presidential election has shown, it’s that the general public in this country—as reflected by Republican president-elect Donald Trump and former Democratic candidate Hillary Clinton—rejects free trade agreements without truly understanding them. The widely held belief is that trade agreements, such as the North America Free Trade Agreement and others, send American jobs overseas. No doubt these agreements,...

In a court of law - or at least in the courts of the TV show Law & Order - prosecutors need to show three things to convict a defendant: motive, means and opportunity. Of course, some physical evidence, like a murder weapon, DNA or something else linking them to the crime scene, eyewitness testimony, or a confession would certainly help, but that’s beside the point. In the world of high-stakes mergers and acquisitions, however, sometimes motive, means and opportunity still a...

RELATED COVERAGE AlixPartners: Ocean freight shippers need to think short term Let’s start with a theory. Assume for a second that the actual act of transportation procurement isn’t insanely time-consuming and rigorous (not to mention mind-numbing). Let’s assume that in this alternate universe, it would be just as easy to run a procurement bid every month or week as it would be to do so once a year. Given those circumstances, would you be more likely to procure mor...

American Shipper’s IT Editor Eric Johnson gave a presentation at the Council of Supply Chain Management Professionals (CSCMP) Roundtable in Jacksonville, Fla. Tuesday night on "The Amazon Effect." The presentation focused on the way that Amazon is impacting perceptions and attitudes about the supply chain. The e-commerce giant has plans for a major distribution center in Jacksonville and it is expected to tighten an already very tight labor market for qualified wa...

FOB vs CIF. As two of the most common Incoterms, how do you determine which one is right for your business? The answer depends on one crucial factor: how much control do you want over the shipping process? The control of shipping a product from Point A to Point B can either be yours or your buyer’s/seller's, depending on whether you choose FOB or CIF. With a free on board (FOB) shipment, the seller/exporter bears the cost and risk until the cargo has been loaded on board ...

The recent declaration of bankruptcy by South Korean ocean carrier Hanjin Shipping is a symptom of what ails the container shipping industry, not the cure, as some analysts seem to suggest. For years now, the industry has been beset by a combination of tepid global trade volumes and persistent overcapacity, which has caused rates to plummet to historic lows with little hope of a bounce-back. Some think the short-term spot rate increase seen in the days following Han...

Shippers utilizing ocean freight rate intelligence platform Xeneta are still “reeling” from the knock-on effects of ocean carrier Hanjin Shipping filing for bankruptcy in South Korea, according to a recent commentary from Patrik Berglund, chief executive officer of the Oslo-based company. Xeneta, which crowd-sources over 12 million contracted rates and covers over 60,000 individual port pairs from more than 600 major international businesses, said shippers have been hurt by...

It’s hard not to feel like Hanjin Shipping was the gazelle that happened to be on the outside of the herd when a hungry pride of lions was looking for dinner. There’s far more nuance in why Hanjin collapsed when other liner carriers didn’t than you see in a typical nature special. You can trace Hanjin’s troubles back a few years, not a few months, with multi-year internal and external dynamics at play. For instance, an advisory company looking to help carriers rebal...

More than 72 percent of beneficial cargo owners and ocean intermediaries surveyed by American Shipper Thursday and Friday said they currently have cargo aboard vessels belonging to the beleaguered liner carrier Hanjin Shipping. The South Korean shipping line filed for receivership Wednesday, setting off pandemonium in global container trades. Reports of soaring spot market rates on both the transpacific and Asia-Europe trades were widespread, and more worryingly, vessels are bei...

More than 70 percent of beneficial cargo owners and ocean intermediaries surveyed by American Shipper Thursday said they currently have cargo aboard vessels belonging to the beleaguered liner carrier Hanjin Shipping. The South Korean shipping line filed for receivership Wednesday , setting off pandemonium in container trades. Reports emerged Thursday of soaring spot market rates on both the transpacific and Asia-Europe trades, and more worryingly, vessels are being prevented fro...

Unless there is a rapid takeover of Hanjin Shipping, which filed for receivership in Korea Wednesday , shippers of containerized cargo, including those that do not do business with Hanjin, could see major disruptions and spikes in spot freight rates. Brian Bourke,vice president of marketing for SEKO Logistics, said already on Thursday transpacific rates had risen substantially. "This may get much worse before it gets any better," he said. SeaIntell...

The news that Hanjin Shipping has apparently filed for bankruptcy has shaken up the ocean freight world. American Shipper is collecting feedback on the impact of this massive news on the liner carrier industry. This short survey should take no more than five minutes. We greatly value your participation in American Shipper research initiatives.

Gary Chisamore Source: Freightgate Shippers typically have three expiry dates for their ocean rates: year-end (for exports), spring (for imports) and their fiscal year end. In these times of low rates, shippers would all love to lock in rates and get liner carriers to agree to multiyear agreements. But that’s not going to happen. So shippers are likely to dust off their in-house or third-party bidding tool. They might only use it once a year, and might have forgotten how to use...

This isn’t about politics anymore. This is about an absolute void of discussion. This isn’t a left or right issue, it’s an issue of facts versus ignorance. Of the common good versus the affected few. The vocal minority versus the silent majority. Simply put, the lack of proper discourse about the United States ratifying the Trans-Pacific Partnership (TPP), a sweeping free trade agreement (FTA) between 12 Pacific Rim nations, is the worrying thing. There isn’t wrong-...

Freight bill auditing is a proven method of paring the cost of freight and parcel shipping to the minimum. Freight auditing typically delivers cost reductions far greater than the cost to implement auditing – positive ROI is its hallmark. The only question is how best to implement auditing: outsourced or in-house? And if in-house, should a shipper use a manual system, a self-developed automated system, or external software integrated into the shipping process? Which of the three...

Investors are understandably excited about a change of the guard at AP Moeller-Maersk but much will depend on how brave new management is prepared to be. The stock jumped about 12 percent on Thursday in the biggest one-day gain since 2008 on hopes that the container shipping and oil group will carry out a radical face lift that could help remove the discount investors often apply to large conglomerates -- Jefferies analyst David Kerstens says in Maersk's case this has led to sha...

Most of the United States’ primary Iranian sanctions applicable to U.S. individuals and companies have not been suspended and remain in full force and effect . Violations of those sanctions will continue to expose U.S. individuals and companies to fines and penalties. Why should you be concerned? The U.S. and International sanctions involving Iran have had a convoluted history and have been at best confusing for those involved in international trade and transportation. Th...

When the winds of change blow, a Chinese proverb says, some people build walls and others build windmills. Given the tremendous environmental challenges the world faces, it’s not enough just to build windmills. We need to develop a range of innovative environmental technologies, and we need to break down barriers to trading them worldwide. Global trade in wind turbines, water filters and other environmental goods amounts to nearly $1 trillion annually, and it’s growing fast. But...

Airlines long ago cottoned on to the fact that being part of an alliance could save them money and help them offer passengers a greater variety of routes. Container-shipping companies have also long recognized the benefits of pooling their resources. Number of companies in Hapag Lloyd alliance: six. Until recently, there were four major container-liner alliances -- but that industry structure is now rapidly shifting as dwindling freight rates -- the result of the in...

Amazon’s global takeover has taken a different direction, and just about everyone in the shipping and logistics industry is watching – and worrying. On the high seas, the Seattle-based conglomerate has been granted a license for ocean container shipping from the U.S. government and a similar license from the Chinese Ministry of Commerce. Meanwhile, in the skies, Amazon has signed a deal with Air Transport Services Group to lease 20 Boeing 767 aircraft to transport merchandise ar...

In May of 2014, the International Maritime Organization’s Maritime Safety Committee (MSC) approved changes to the Safety of Life at Sea (SOLAS) treaty to require shippers to verify gross mass of a container carrying cargo. This new requirement goes into effect July 1, 2016, and it is currently sending waves of distress through the carrier, port and trade communities. There are two main parties affected by this SOLAS update – the responsibility of obtaining and documenting ...

The railroad deal that never was is officially not happening. Canadian Pacific, the $21 billion railroad backed by Bill Ackman, announced on Monday that it's calling off efforts to strike a merger with its American counterpart Norfolk Southern. It's a bit of a formality really after a series of underwhelming and increasingly desperate-looking bids elicited only a cold shoulder from Norfolk Southern. Canadian Pacific had planned to submit a resolution simply calling for “go...

We’re either a 100 days away from container shipping Armageddon or from the next Y2K because today marks 100 days until the verified gross mass rule comes into effect worldwide on July 1. The verified gross mass (VGM) rule, an amendment to the International Maritime Organization’s century-old Safety of Life at Sea (SOLAS) convention, requires shippers to verify the weight of their containers and send data related to that verification to carriers before dropping them at the port ...

A subsidiary of e-commerce company Amazon recently registered as a foreign-owned non-vessel-operating common carrier with the U.S. Federal Maritime Commission, a move that has sparked further speculation that the online retailer is expanding into the transportation business. Beijing Century Joyo Courier Service Co., Ltd. filed for registration with the FMC on Nov. 9, 2015, and was registered officially on Nov. 13, according to Sandra Kusumoto and Clifford Johnson, director...

The Maersk Group announced last week it was upping the amount of paid maternity leave it will offer female employees. “While the practical application of the new program is still being finalized, once implemented in the U.S., more than 1,200 women employed will be eligible for 18 weeks of paid leave compared to their current paid leave which was typically six weeks,” the company said. The broadening of maternity leave benefits is part of a global initiative to help ...

The emergence of API messaging, a topic covered in the October issue of American Shipper (“A New Communication Pipeline,” p. 8), is nothing new. This type of exchange has been around for at least a decade. At SMC³, our business is fueled by web-service APIs. As an industry association that provides trusted, leading pricing and transit-time tools, we’ve moved through several generations of technology, providing desktop-rating tools on CDs, then application products on the web, an...

This time last year anyone involved in America’s container trades was struggling to efficiently move an influx of inbound traffic out the marine terminals and into the country’s commerce. Some of this congestion could be blamed on the meltdown on the U.S. West Coast due the oft-contentious contract negotiations between the International Longshore and Warehouse Union and its employers. However, it was more the result of a changing market dynamic toward bigger ships, increased con...

Maritime Administrator Paul Jaenichen claims in his Aug. 3 American Shipper opinion piece that the Maritime Administration is a transparent agency with a well-run Maritime Heritage Grant program . I was the MarAd chief counsel from 2009 to 2012, and I know a little bit about the agency's practices. Administrator Jaenichen's statements are full of government obfuscation and instead of giving you the real facts, he's frantically trying to hide the agency's misdeeds. B...

Over recent months, I’ve been struck by frantic efforts to portray a shady world of legal irregularities, sinister connections and improbable coincidences surrounding the handling of funds from recycled obsolete Federal vessels. Among these, there was even an eyebrow-raising, anxiety-inducing column driven by the conspicuous question: “ where did the Maritime Heritage Grant money go? ” Every question — good or bad — deserves an answer, and as maritime administrator of the United...

American Shipper has been benchmarking supply chains since 2008, but sometimes it’s just as instructive to get in front of a group of people. You get a chance to see what they do, what their concerns are, and (just as importantly) see what they’re interested in. This week, I had the fortune to speak to the Jacksonville CSCMP Roundtable about technology usage in the transportation and logistics industry. One of the first questions I asked was simple: who uses Excel ...

Sometimes one kind act deserves another. In these pages last month, our columnist Tom Nightingale described his efforts to get airline passengers to transfer their upgrades to soldiers. The piece unsurprisingly struck a strong chord with readers, especially coming as it did after the holiday season. The spirit of generosity is not confined to our columnists, however. Recently, an American Shipper reader and participant in one of our research surveys made his own giv...

I read your recent article, “ Jones Act’s new horizon ” (January issue, pages 28-32), with great disappointment that Guam is apparently a “non-entity” from your view. With the loss of Horizon lines Guam now has no competition and is solely reliant on Matson for U.S. goods. Since the departure of Horizon, Matson has recorded record profits, while continuing to increase pricing even though they have experienced increased volume and greater efficiency as a result of Horizon’s depar...

I have been in the hay export business for 32 years. During that time I have enjoyed the relevant input to shipping issues provided by American Shipper . I was especially thrilled to read your excellent editorial (January issue, page 48) regarding the port issues we are dealing with. This has been a disastrous affront to so many businesses which depend on scheduled deliveries to satisfy their customer needs. I applaud you for helping bring this issue to light. Many h...

CBP Commissioner Gil Kerlikowske on Dec. 16 announced that Todd Owen has been promoted to assistant commissioner of field operations. John Wagner, the acting assistant commissioner, was named the permanent deputy assistant commissioner. Owen, a rising star within the agency, currently is the director of field operations for the Los Angeles region, with oversight of local airports, Las Vegas International Airport, and the ports of Los Angeles and Long Beach. Before relocating fro...

The countdown to a new, simpler way of doing business with U.S. Customs and other government agencies when it comes to cross-border trade is getting closer. I’m talking about the Automated Commercial Environment and International Trade Data System. Think of them as new computer systems and software programs designed to take the red out of red tape. ACE is the new backbone of Customs and Border Protection’s trade processing and risk management activities and the key ...

You might recall American Shipper put out a series of reports five or so years ago with transportation analyst Merge Global on the future of logistics and various transportation markets. As is the case with such consultancies, Merge Global has become Logistics Capital & Strategy, though stalwarts like Brian Clancy (a co-founder of Merge Global who often wrote in American Shipper ) remain, as does industry vet Ted Prince, most recently with Kansas City Southern. ...

Fox Business News ’ “Money With Melissa Francis” program was recently called out by the Associated General Contractors of America for running with a preconceived notion, rather than checking the facts. It’s a journalistic no-no. During a segment that aired on the Friday, Jan. 16 show, Francis cited the recent groundbreaking for the Michael Haydon Transportation Museum in Lexington, Ky., as proof that Highway Trust Fund dollars, which come from the gas tax, are stil...

As the founding partner of management consulting firm Summit Strategic Partners and a former port director, Stanley Payne sees interesting similarities between start-up companies he assists and port authorities. For one, ports and startups always seem to be looking for money. Then they price their product unrealistically low to gain market penetration. But after years of higher and higher sales and volumes, both face the harsh reality of profit expectations, Payne s...

Johnson I’m not big on predictions, but here are a few technology-related concepts to keep in front of your mind as we transition to 2015: Internet of things : If you’re not familiar with this term, it would behoove you to do so. Building a network means not just connecting systems (a very abstract idea) but also physical infrastructure, like vehicles and devices. It’s more important than ever for transportation and logistics managers to understand how these networks impact th...

With a number of Democrats leaving Congress in 2015, the primary election results will have an immediate impact on the makeup of the House Transportation and Infrastructure Committee. Longtime West Virginia congressman Nick Rahall has lost his re-election bid, and when he leaves the chamber next year, the T&I Committee will lose its ranking member. According to reports, Peter DeFazio, D-Ore., will ascend to the ranking member position. Democrat Tim Bishop of New...

It’s amazing what a new crowd can do for perspective. Earlier this week, I got a chance to attend a gathering of transportation finance professionals to discuss American Shipper ’s research on the freight payment landscape. Our research is purposely focused on the trends, strategies, and technology usage of freight payers. The crowd, from the National Association of Credit Management, was composed largely of people at carriers and logistics services providers. Their...

U.S. Customs and Border Protection and the General Services Administration yesterday announced the open period for accepting donation proposals to help improve border processing, as authorized in Section 559 of last year's appropriation act. Congress gave CBP and GSA permission to accept donations of property, money or services from the private sector or local governments for the construction, alteration, operation or maintenance of new or existing ports of entry. &n...

U.S. Homeland Security Secretary Jeh Johnson concluded Tuesday a two-day trip to Ottawa, where he met with Prime Minister Stephen Harper and members of his cabinet to discuss anti-terrorism cooperation and ongoing implementation of the Beyond the Border initiative. Beyond the Border is a three-year-old bilateral effort led by Harper and President Obama to improve North American economic growth, and streamline border processes to facilitate trade and harmonize regulations. ...

Related Content The U.S. infrastructure climate In June 2013, American Shipper ’s cover story explored the ways shippers could seek out solutions that could help them derive true total landed cost. The idea behind the piece was that it takes a lot of data points, not to mention elbow grease, to arrive at the actual figure. But figuring out the landed cost puzzle is rewarding—it allows shippers to make better decisions on routes, modes, transit times, and sourcing locations. &nb...

The National Transportation Safety Board has revoked the status of UPS and the Independent Pilots Association as "interested parties" able to provide technical assistance for its investigation of a UPS Airbus A300 freighter that crashed in Birmingham, Ala., last August. Two flight crew members were killed, and the plane was destroyed upon impact less than a mile short of the runway. The independent agency said it took the action after the IPA and UPS violated the te...

U.S. Trade Representative Michael Froman earlier this month made the rounds of key exporting states to highlight the importance of exports to small businesses and the regional economy. The trip coincided with a "Made in Rural America" regional forum dedicated to promoting rural exports, which was held at Cornell College in Mt. Vernon, Iowa. In February, the White House's Rural Council launched a "Made in Rural America" export initiative to pull together federal resources so busi...

Trade advocates say there still is a window of opportunity to implement the agreement on trade facilitation reached by ministers at a World Trade Organization meeting in Bali, Indonesia, last December. India is receiving the largest amount of blame for the failure to reach a final agreement on an implementation framework by July 31. India and several other WTO members sought to postpone implementation until negotiations on other aspects of the Bali accords are complete. India wa...

The Department of Homeland Security on Friday announced $100 million in grant allocations for port security , part of $1.6 billion in awards to states and localities for a range of programs tied to homeland security preparedness. Port security grants are used to help port authorities, private terminals and local law enforcement protect infrastructure from terrorism, enhance maritime domain awareness, improve risk management, and plan recovery in the event of a disaster. &...

The U.S. House of Representatives last week easily passed an Energy and Water Appropriations bill for fiscal year 2015 that funds agencies such as the Army Corps of Engineers, which is responsible for maintaining and upgrading navigable channels for inland waterways and harbors. Included in the bill is an amendment to increase spending from the Harbor Maintenance Trust Fund by $57.6 million to meet the target set in the recently enacted Water Resources Reform and Development Act. &nbs...

John D. Rockefeller, chairman of the Senate Commerce, Science and Transportation Committee, on Monday urged President Obama to speed up a rulemaking aimed at improving safety for transportation of crude oil by rail. The Office of Management and Budget is reviewing proposed rules by the Department of Transportation that would set stricter design standards for tank cars used to carry crude oil, in addition to requiring other precautions. Older DOT-approved tank cars tend to ruptur...